Canadian Pacific Gets Voting Trust Approval From STB For Kansas City Southern Deal

(RTTNews) - Canadian Pacific Railway Limited (CP, CP.TO) said that it has received a voting trust approval from Surface Transportation Board for its planned acquisition of Kansas City Southern (KSU) or KCS.

In order to close into voting trust, the transaction requires approval from shareholders of both companies along with satisfaction of customary closing conditions. CP would then acquire KCS shares and place them into the voting trust, at which point KCS shareholders will receive their consideration.

In March, Canadian Pacific Railway agreed to acquire Kansas City Southern in a stock and cash transaction representing an enterprise value of about $29 billion. The deal included the assumption of $3.8 billion of outstanding Kansas City Southern debt.

In April, Canadian National Railway made a proposal to buy Kansas City Southern in a cash-and-stock transaction valued at $33.7 billion, including $3.8 billion of KCS deal.